HAMILTON, Bermuda--(BUSINESS WIRE)--Everest Re Group, Ltd. (NYSE: RE) today reported first quarter 2018 net
income of $210.3 million, or $5.11 per diluted common share, compared to
net income of $291.6 million, or $7.07 per diluted common share for the
first quarter of 2017. After-tax operating income1 was $219.7
million, or $5.34 per diluted common share, for the first quarter of
2018, compared to after-tax operating income¹ of $267.1 million, or
$6.48 per diluted common share, for the same period last year.

Commenting on the Company’s results, President and Chief Executive
Officer, Dominic J. Addesso said, “Everest continues to deliver a solid
performance with double digit returns on equity. Our diversified growth
strategies, with premium up 21%, continue to provide balance and
stability to the overall portfolio. In fact, excluding catastrophe
losses, our net operating income was up 5% and underwriting income was
above $200 million. We are pleased with our overall results and believe
they once again demonstrate the strength of the Everest franchise.”

Effective this quarter, the Company changed its reporting of operating
income, a non-GAAP financial measure. Historically operating income
represented net income, excluding realized capital gains and losses and
the tax impact related to the enactment of the Tax Cuts and Jobs Act in
2017. Starting in first quarter 2018, the Company further adjusted
operating income to exclude foreign exchange gains and losses as it
believes the impact of foreign currency movements on income is not
indicative of the performance of the underlying business in a particular
period.

Operating highlights for the first quarter of 2018 included the
following:

Gross written premiums for the quarter were $1.9 billion, an increase
of 21% compared to the first quarter of 2017. On a constant dollar
basis, premium was up 19%, quarter over quarter. Worldwide reinsurance
premiums were up 22% to $1.4 billion, with growth across each segment
primarily driven by increased pro-rata premium. Direct insurance
premiums were up 16%, from first quarter 2017, to $505 million,
consistent with the growth trends noted through 2017.

The combined ratio was 93.3% for the quarter compared to 86.0% in the
first quarter of 2017. Excluding the previously announced catastrophe
losses arising from the 2017 Northern and Southern California
wildfires, the attritional combined ratio was 87.1% compared to 84.5%
in the same period last year. The higher attritional loss ratio is
driven by changes in mix of business as well as higher retrocessional
costs in the quarter.

Net investment income increased 13% for the quarter to $138.3 million.

Cash flow from operations was $195.6 million compared to $381.8
million for the same period in 2017.

For the quarter, the annualized after-tax operating income¹ return on
average adjusted shareholders’ equity² was 10.5%.

Shareholders’ equity ended the quarter at $8.3 billion, relatively
flat compared to year end 2017. Book value per share was modestly down
from $204.95 at December 31, 2017 to $203.62 at March 31, 2018.

This news release contains forward-looking statements within the
meaning of the U.S. federal securities laws.We intend these
forward-looking statements to be covered by the safe harbor provisions
for forward-looking statements in the U.S. Federal securities laws.
These statements involve risks and uncertainties that could cause actual
results to differ materially from those contained in forward-looking
statements made on behalf of the Company.These risks and
uncertainties include the impact of general economic conditions and
conditions affecting the insurance and reinsurance industry, the
adequacy of our reserves, our ability to assess underwriting risk,
trends in rates for property and casualty insurance and reinsurance,
competition, investment market fluctuations, trends in insured and paid
losses, catastrophes, regulatory and legal uncertainties and other
factors described in our latest Annual Report on Form 10-K.The
Company undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.

Everest Re Group, Ltd. is a Bermuda holding company that operates
through the following subsidiaries: Everest Reinsurance Company provides
reinsurance to property and casualty insurers in both the U.S. and
international markets. Everest Reinsurance (Bermuda), Ltd., including
through its branch in the United Kingdom, provides reinsurance and
insurance to worldwide property and casualty markets and reinsurance to
life insurers. Everest Reinsurance Company (Ireland), dac. provides
reinsurance to non-life insurers in Europe. Everest Insurance®
refers to the primary insurance operations of Everest Re Group, Ltd.,
and its affiliated companies which offer property, casualty and
specialty lines insurance on both an admitted and non-admitted basis in
the U.S. and internationally. The Company also operates within the
Lloyd's insurance market through Syndicate 2786. In addition, through
Mt. Logan Re, Ltd., the Company manages segregated accounts, capitalized
by the Company and third party investors that provide reinsurance for
property catastrophe risks. Additional information on Everest Re Group
companies can be found at the Group’s web site at www.everestregroup.com.

A conference call discussing the first quarter results will be held at
10:30 a.m. Eastern Time on April 26, 2018. The call will be available on
the Internet through the Company’s web site or at www.streetevents.com.

Recipients are encouraged to visit the Company’s web site to view
supplemental financial information on the Company’s results. The
supplemental information is located at www.everestregroup.com
in the “Financial Reports” section of the “Investor Center”. The
supplemental financial information may also be obtained by contacting
the Company directly.___________________________

1The Company generally uses after-tax operating income
(loss), a non-GAAP financial measure, to evaluate its performance.
After-tax operating income (loss) consists of net income (loss)
excluding after-tax net realized capital gains (losses), after-tax net
foreign exchange income (expense), and the tax charge related to the
enactment of the Tax Cuts and Jobs Act of 2017 (TCJA), as the following
reconciliation displays:

Three Months Ended

March 31,

(Dollars in thousands, except per share amounts)

2018

2017

(unaudited)

Per Diluted

Per Diluted

Common

Common

Amount

Share

Amount

Share

Net income (loss)

$

210,318

$

5.11

$

291,643

$

7.07

After-tax net realized capital gains (losses)

(19,355)

(0.47)

32,110

0.78

After-tax net foreign exchange income (expense)

9,933

0.24

(7,558)

(0.18)

Impact of TCJA enactment

-

-

-

-

After-tax operating income (loss)

$

219,740

$

5.34

$

267,091

$

6.48

(Some amounts may not reconcile due to rounding.)

Although net realized capital gains (losses) and net foreign exchange
income (expense) are an integral part of the Company’s insurance
operations, the determination of net realized capital gains (losses) and
foreign exchange income (expense) is independent of the insurance
underwriting process. The Company believes that the level of net
realized capital gains (losses) and net foreign exchange income
(expense) for any particular period is not indicative of the performance
of the underlying business in that particular period. Providing only a
GAAP presentation of net income (loss) makes it more difficult for users
of the financial information to evaluate the Company’s success or
failure in its basic business, and may lead to incorrect or misleading
assumptions and conclusions. The Company understands that the equity
analysts who follow the Company focus on after-tax operating income
(loss) in their analyses for the reasons discussed above. The Company
provides after-tax operating income (loss) to investors so that they
have what management believes to be a useful supplement to GAAP
information concerning the Company’s performance.